Prof. Eric T. Bradlow & Steve Ennen of Wharton, OMS 2010 Keynote on Social Media


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Eric T. Bradlow & Steve Ennen Keynote address at Online Marketing Summit, San Diego, 2010. Topic is social media myths and misconceptions

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Prof. Eric T. Bradlow & Steve Ennen of Wharton, OMS 2010 Keynote on Social Media

  1. 1. Academically-Practical and Practically-AcademicLearnings in Interactive Media<br />Wharton Interactive Media Initiative <br />Professor Eric T. BradlowK.P. Chao Professor; Professor of Marketing, Statistics, and Education Vice-Dean and Director, Wharton Doctoral ProgramsCo-Director, Wharton Interactive Media Initiative <br />Steve Ennen <br />Managing Director, Wharton Interactive Media Initiative<br />Lecturer in Marketing<br /><br />
  2. 2. wimi overview<br /><ul><li>Brings a passionate data-driven perspective to media businesses (content distribution and information acquisition) in a way that no other business school in the world can match.
  3. 3. Distinguishes itself with a tight focus on the interaction between content provider and user, capitalizing on the wealth of individual-level data that is exploding at the crossroads of commerce, technology, and entertainment.
  4. 4. Is dedicated to bringing world-class research rigor to better understand these complex interactions in order to drive new business strategies and tactics that will reshape the media landscape.</li></ul>WHARTON INTERACTIVE MEDIA INITIATIVE<br />
  5. 5. wimi global infrastructure<br />Global network of research partners<br />WHARTON INTERACTIVE MEDIA INITIATIVE<br />Wharton Lab for Publishing Innovation<br />WIMI<br />Research,<br /> Student Placement Interns,<br />Partners<br />
  6. 6. academically practical interactive media 2009-10<br />Impact and Emergence of UGC: <br />Dec 2009<br />Social Networking: Jan 2009<br />Mobile Marketing: 2011<br />Cross-Platform Data: Dec 2010<br />
  7. 7. academically practical interactive media 2009-10<br />Company Participants<br />Interface seems pretty practical<br />
  8. 8. does the great divide really exist?<br />Academics<br />Practice<br />Academically-Practical<br />Practically-Academic<br />
  9. 9. wharton, social networking data, 2009:<br />Ansari, Koenigsberg & Stahl “Modeling Connectivity in Online Networks”<br />Improved Predictions<br />Social network data helps to improve predictions of behavior above and beyond just behavior<br />Popularity and Activity correlated across relationships <br />More popular social networkers are also more active<br />Online popularity is a more important correlate of online behavior than offline<br />Online predicts online better than offline predicts online<br />><br />+<br />><br />
  10. 10. A unifying framework: methods, Applications, and questions<br />Methods<br />Application<br />Statistical Modeling<br />Music<br />Invest in Social Network<br />Data?<br />Decision<br />
  11. 11. wharton, social networking data, 2009<br />Hartmann<br />“Econometric Modeling of Social Interactions” (Golf Data)<br />Social Multiplier<br />A<br />B<br />Social Influence<br />Give Lower Price to A to Exploit B<br />Maximize Total Dollars not “Myopic Dollars”<br />Community Building<br />
  12. 12. pricing digital content (kannan et al: 2007)<br />
  13. 13. pricing digital content(iyengar, abhishek, bradlow 2007)<br />Popularity begets<br />popularity; but <br />how do you get it?<br />Free Gets You <br />Up The Charts<br />But, Free is Free!<br />Freemium<br />
  14. 14. a unifying framework: methods, Applications, and questions<br />Methods<br />Application<br />Empirical Economics<br />Golf<br />How to Price in a <br />World of Interactions<br />Decision<br />
  15. 15. wharton, social networking data, 2009<br />Iyengar, Van den Bulte, Valente“Opinion Leadership and Social Contagion in New Product Diffusion”<br />vs<br />“Managerial Calculus”<br />Network Intervention – In each city, the physician with the highest in-degree is targeted and is persuaded to increase his/her prescription by 10 units <br />Detailing Intervention – Each physician is given an additional detail. <br />Higher Effectiveness<br />Influencers work “locally”!<br />
  16. 16. cut through the clutter<br />
  17. 17. A unifying framework: methods, Applications, and questions<br />Methods<br />Application<br />Statistical Modeling<br />Pharmaceutical<br />How do I optimally seed?<br />Decision<br />
  18. 18. wharton, social networking data, 2009<br />Libai, Muller, and Peres“Untangling Customer Social Equity via Agent Based Models”<br />A technique for complex system modeling, which simulates global phenomena based on local interactions between units. <br />At each point in time members can decide whether to adopt a new product or to remain non-adopters<br />Each unit represents an individual member in the social network<br />Each linkrepresents a communication tie between members<br />Monetizing Your<br />Community<br />
  19. 19. a unifying framework: methods, applications, and questions<br />Methods<br />Application<br />Agent-Based Modeling<br />Simulated Worlds<br />Value of Individuals <br />and Influentials (CLV)–<br />Is it all just hype?<br />Decision<br />
  20. 20. why is it important to learn from ugc?<br />Public<br />“Free”<br />Spontaneous<br />Passionate<br />Evolving and live<br />Temporally disaggregate <br />Consumers self-select<br />
  21. 21. wharton research onugc, 2009<br />Bayus“Crowdsourcing New Product Ideas”<br />“The goal is for you, the customer, to tell Dell what new products or services you’d like to see Delldevelop.” <br />Daily: Feb 2007 – Feb (June) 2009<br />7,100+ ideas<br />4,300+ ideators<br />170 ideas implemented (outcome)<br />New product ideas and their<br />ideators are not easily predictable<br />
  22. 22. A unifying framework: methods, Applications, and questions<br />Methods<br />Application<br />UGC Platform<br />Generating New Products<br />Where do good ideas<br />come from and how do<br />I encourage creation?<br />Decision<br />
  23. 23. wharton research onugc, 2009<br />Feldman, Goldenberg, Netzer“Mine Your Own Business: Market Structure Surveillance”<br /><ul><li>Text mine consumer postings
  24. 24. Use network analysis framework and other co-occurrence methods of analysis to reveal the underlying market structure</li></ul>Is “classic” Marketing<br />Research dead?<br />
  25. 25. a unifying framework: methods, applications, and questions<br />Methods<br />Application<br />Text Mining +<br />Correlational Methods<br />Market Positioning<br />Automated, Free, and Fast<br />Marketing Research –<br />Is traditional research dead?<br />Decision<br />
  26. 26. wharton research on ugc , 2009<br />Tirunillai and Tellis“Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance” <br /> Stock Price (adjusted) UGC Chatter<br />“You can take UGC to the Bank”<br />
  27. 27. a unifying framework: methods, applications, and questions<br />Methods<br />Application<br />Text Mining +<br />Time-Series Methods<br />Stock Prices<br />Does UGC drive and predict<br />shareholder value?<br />Decision<br />
  28. 28. challenges to measurement<br />Impact is clear, but measurement can be challenged by noise<br /><ul><li> Soft metrics – meaningless or close to meaningless
  29. 29. Faux metrics – fabricated by technology
  30. 30. Data deluge
  31. 31. Confusion</li></li></ul><li>cut through the clutter<br /><ul><li> Engagement </li></ul>(verb, not a metric)<br />“Seriously though, I am surprised that your analysis pegs me as one of the most engaged users to your site. I subscribe to your RSS feed via Yahoo, and eventually get around to reading each new posting, but my access is very occasional. Your email to me was the first that I was aware of the posting.”<br />posting on analytics site by its “most engaged visitor”<br />
  32. 32. tomorrow’smeasurement<br />The next challenge<br />The data collection radically increases speed through<br />Real time measurement<br />
  33. 33. measuring the real-time web<br />
  34. 34. measuring the real-time web<br />
  35. 35. measuring social media success<br />Four failures of measurement & analytics<br />1. Information is ineffectively shared within the organization - Everyone in the strategic process needs to know<br />2. Goals and the metrics themselves are poorly defined - You should not be spending money or building campaigns just to bring people to your site, you must bring people to your site with a specific goal in mind<br />
  36. 36. measuring social media success<br />Four failures of measurement & analytics<br />3. Companies either don’t take action or take improper action on results<br />The secret to truly successful marketing is actionable measurement. Measuring your results alone isn’t enough; the key to feeding them back into your sales and marketing process.<br />4. No holistic or cross-platform synchronization<br />
  37. 37. summary<br />It is all about the data!<br />In many cases, practitioners have it – academics want it.<br />Scraping programs mean we can now all have it and in real-time.<br />Convergence of problems between academia and practice, in the interactive media space, has never been higher.<br />Advances still need to be made on scale of academic methods.<br />Let’s look for the next great divide! It demonstrates an opportunity for further study.<br />
  38. 38. wharton interactive media initiative<br />Eric T. Bradlow<br /><br />Steve Ennen<br /><br /><br />WHARTON INTERACTIVE MEDIA INITIATIVE<br />